Aging Disputes: Lava Terrace Cellars submits revised winery plan amid mixed testimony
BEND, Ore. (KTVZ) -- Three year neighborhood debate over proposed tasting room and winery continues with the Deschutes Board of County Commissioners reviewing a modified application last week. The proposed winery on Bowery Lane is about five miles north of Bend.
Commissioner Adair and Commissioner Debone voted to close public testimony for the project, known as Lava Terrace Cellars, with formal deliberations scheduled for a later date. Commissioner Chair Phil Chang recused himself from the hearing due to potential conflict of interest having received $7,000 in campaign contributions from the Bayard's, who are head of the Rock O' Ranch Homeowners Association which is leading the charge in opposing the winery.
Property owners Duane and Dina Barker are seeking county approval for the small-scale winery and tasting room. The project has been under review for more than two years and has faced ongoing challenges from neighbors regarding zoning, wastewater and traffic.
Carol Dollhousen, a neighbor to the Barker's and Bayard's who's in favor of the winery spoke to commissioners, highlighting the small neighborhood community's fragmented relations. She said, "The neighborhood is very divided. However, I do not think it is true that the winery divided the neighborhood." Dollhousen added, "it was the tactics that were used and the way the HOA was done that was destructive to the unity and friendships and the community."
Although a hearings officer initially approved the plan in early 2024, the current modifications were submitted to bring the project into full code compliance.
The Barkers presented several revisions to the application during the meeting, including a reduction in annual wine production from 2,000 cases to 1,500 cases. Other modifications include fewer parking spaces, updated fire access information, building compliance details and the removal of property from the public right of way. Barker told commissioners the changes were intended to satisfy regulatory requirements. "Since this has already been approved, we're really just asking for the approval of the modifications that were being presented that bring everything into code compliance," Barker said.
Michele Bayard, a neighbor and head of the Rock O' Ranch Homeowners Association, argued that Oregon law prevents commercial activity on the property. While the land is currently designated as a multiple-use agricultural zone, Bayard contended that state statutes regarding wineries require larger plots of land. "Oregon law or as 215 452 explicitly states that an Oregon winery shall be cited on lands on exclusive farm use and must have a minimum parcel size of 15 acres," Bayard said.
Wastewater management emerged as a primary concern for opposing neighbors. Toby Bayard, a resident in the area, warned that the winery's operations could impact the local aquifer. "This amount of wastewater is definitely going to percolate down to the aquifer, particularly because of the porous soil," Bayard said. "And it's going to be a big lawsuit. And actually, State of Oregon can be held liable. Perhaps the county, if you approve it and certainly the Barkers."
A legal representative for the Barkers stated that the applicants sought Department of Environmental Quality approval for their management plan. The lawyer explained that the proposal was adjusted to use holding tanks rather than ponds to manage the water used to clean and rinse equipment. "The wastewater management plan that DCPs reviewed and approved addresses is like the process by which that the potable water is used to clean equipment, rinse equipment and then it goes into holding tanks," the lawyer said. The plan includes the use of several 275-gallon tanks.
Traffic safety on the dirt and gravel road was also debated. Neighbor William McVicker testified that residents frequently use the road for walking, biking and horseback riding and expressed concern that visitors would not see pedestrians around blind corners. Additionally, county transportation officials identified fencing, trellising and vines that are currently obstructing the public right of way. Officials stated these items must be removed as a safety requirement.
The hearing drew a packed house of supporters, including 14 individuals who spoke in favor of Lava Terrace Cellars. Proponents noted that the Barkers do not use herbicides or pesticides in their vineyard and argued that the appointment-only tasting room would have a minimal impact on traffic. Barker said the winery fits into the region's long-term agricultural goals. "This will be something that actually supports the growth, the agritourism, the farm to table aspect of what the High Desert Food Alliance is doing and other organizations," Barker said. "We want to support the agritourism that has been proposed in the 2040 plan."
The legal authority of the Rock O' Ranch Homeowners Association remains a point of contention between the parties. A lawyer, offering legal perspective to the record, cited a recent Deschutes County court case which he claimed invalidated the association and its restrictions on commercial activity. However, Bayard argued that the original 1966 declarations remain in effect and have been enforced. "The judgment is not final," Bayard said. "So let's not say we don't have an HOA. We do have that HOA Does not allow commercial activity."
County commissioners have closed the public record for the application. Deliberations regarding the proposal will take place at a later date.
